BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Current Assets is an account listed on a balance sheet that shows the value of the assets owned by a company that can be converted to cash through liquidation, use, or sales within one year.

Detailed explanation-2: -Hence, the market value of investments is shown in the balance sheet as a footnote according to the disclosure concept.

Detailed explanation-3: -What is owner’s equity? Owner’s equity is essentially the owner’s rights to the assets of the business. It’s what’s left over for the owner after you’ve subtracted all the liabilities from the assets. The term “owner’s equity” is typically used for a sole proprietorship.

Detailed explanation-4: -Divide the company’s total liabilities by its total shareholders’ equity to calculate its debt-to-equity ratio. A ratio below 1 means the company has less debt than equity, which suggests a less risky investment. A ratio greater than 1 means the company has more debt than equity, which could lead to financial trouble.

Detailed explanation-5: -The balance sheet includes information about a company’s assets and liabilities, and the shareholders’ equity that results. These things might include short-term assets, such as cash and accounts receivable, inventories, or long-term assets such as property, plant, and equipment (PP&E).